This is the introduction of the project followed by four submission drop boxes, each of which has its own instructions. You are expected to complete the whole project and submit all requirements to earn the assigned grade/point for the project.
The objective of this project is to strengthen your understanding of financial statements and their use in decision-making. For this project, we will assume that recently a distant relative left you a $50,000 inheritance, which came as a complete surprise to you. You would like to consider taking a portion of the inheritance and investing it in a company. You will assume the role of a financial analyst. Your task is to study a publicly-held company, assess the company’s future prospects, and make an investment decision. This project includes several assignments, each of which comprises a part of an analyst’s role. These individual assignments vary in depth and scope. Please review individual assignment segments for the corresponding due dates.
This project weighs 10% of your final grade. ANY and ALL references must be properly cited. Provide links and detailed information about the company of your choice. Identify name, business, global affiliation, industry field, company size, competitors, if any, read management report and provide any relevant information. Some factors include but are not limited to, stock price, the financial strength of the company, any recent news about, and possible effects on change in its stock price.
Assignment nr.1
Selecting a Company and Company Background

The first assignment for this project is to select a company. Questions to keep in mind as you review possible companies are:
In what industry(ies) does this company operate?
What do you already know about this industry?
Do you know anyone with whom you could speak who works for this company or in this industry?
Do you have a special interest in knowing more?
Has this company or industry been featured in the current news?
Is there sufficient information available about this company or industry?
Does this company face interesting business or accounting issues?
Before you can assess the financial health and prospects of your company, you must learn about its structure and business activities. Submit as an assignment the name of the company you have selected and a paragraph explaining the reason for your selection. Include in this assignment the following information:
Full company name, postal address, and Internet address
The year the company was founded and the state in which it is incorporated
The company’s primary line(s) of business
The company’s independent auditor
The ticker symbol for the company and the stock exchange where it is listed
Membership of the company’s Board of Directors – Describe the composition of the Board using characteristics that you find to be most relevant. Include a brief explanation of the characteristics selected.
Majority-owned subsidiaries (maximum of four), if applicable.
Remember – this assignment must be submitted as a file attachment.
Assignment nr. 2:

The Business Environment and Industry Background
Find and read 2 current articles about the business environment in which your company is operating. The environment refers to economic, legal and sociopolitical factors. Understanding how these factors influence the company’s operations and business strategy will enable you to have a better basis for interpreting its financial picture. Use the ESC Library or other sources to locate these sources.

Write a short summary of each article (150 words) and briefly explain what you learned from the article about the company’s business environment. Be sure to provide a reference citation for each article.

Remember – this assignment must be submitted as a file attachment.
Assignment nr.3:

The Auditors
Public accounting firms perform an important audit (attest) function to provide confidence in the integrity of a company’s financial statements. This assignment focuses on the auditors of your selected company’s financial statements. Using the ESC Library or other resources, document the following information:
the name of the accounting firm that is the company’s auditor
the city where the audit opinion was signed
the size of the accounting firm (You may use multiple measures.)
Research and read two articles about this firm. Write a short summary of each article (100-150 words) and indicate what you learned about the audit firm and/or the public accounting profession. Be sure to include a complete reference citation for each article.

Remember – this assignment must be submitted as a file attachment.
Assignment nr. 4:
Overview of the Annual Report
Review the major sections of the annual report for the most recent year available for your selected company. Typically, there are six segments to an annual report:
Financial Highlights
Company and Products
Management Discussion and Analysis
Financial Statements and Notes
Statement of Management Responsibility and the Report of the Independent Auditors
Basic Company Facts
If there are any substantial deviations from this format, please note this information in your response.
A. Review the year-end most recent year available balance sheet of the company and indicate the following:
the amount of total current assets
the amount of total non-current assets
the amount of total current liabilities
the amount of total non-current liabilities
the amount of total stockholders’ equity
For each of the above, note whether this was an increase, a decrease, or no change from the previous year-end balance sheet.

B. Review the year-end (most recent year available) income statement and indicate the following:
total (operating) revenues
cost of goods sold (if listed)
total expenses (before income taxes)
any non-operating (or extraordinary) gains and losses
earnings per common share
For each of the above, note whether this was an increase, a decrease, or no change from the previous year’s income statement.

C. Review the statement of cash flows for the most recent year available and indicate the following
1. if the company uses the direct or indirect method of presenting this statement
2. net cash inflow (outflow) from operating activities
3. net cash inflow (outflow) from financing activities
4. net cash inflow (outflow) from investing activities
5. net increase (decrease) in cash during the year
D. Given all of the research you have done on this company as part of this project – would you invest in this company? Prepare a brief essay (approximately 2 paragraphs) explaining why or why not.
Important! In order to receive credit for part 4 of the assignment, you MUST provide the web link to the annual report or attach the annual report itself that was used to obtain your answers to part 4.
All items in this response must be clearly identified. Remember – this assignment must be submitted as a file attachment.